Fin­tech firms to lure in­vestors via IPOs

The Jakarta Post - - BUSINESS -

JAKARTA: The flour­ish­ing fi­nan­cial tech­nol­ogy (fin­tech) in­dus­try in In­done­sia is driv­ing busi­nesses to seek cap­i­tal for ex­pan­sion.

In­done­sia Stock Ex­change (IDX) has es­tab­lished an in­cu­ba­tor unit in March to help fin­tech firms pre­pare for go­ing pub­lic in or­der to rake in more cap­i­tal.

Fin­tech, for its part, is ex­pected to pro­pel the de­vel­op­ment of the do­mes­tic stock mar­ket.

“IDX’s mo­bile trad­ing, which is also a fin­tech [ap­pli­ca­tion] of sorts, has proven to in­crease our re­tail in­vestors,” IDX In­cu­ba­tor head Ir­mawati Am­ran said on Mon­day. “Fin­tech com­pa­nies that are more open to the pub­lic will at­tract peo­ple to in­vest in them, and that will help IDX gar­ner more in­vestors as well.”

Cur­rently, IDX In­cu­ba­tor hosts 22 fin­tech firms op­er­at­ing in var­i­ous fields, from crowd­fund­ing to pay­ment trans­fers, she added.

One of them, an on­line-to-off­line e-com­merce plat­form called Kio­son, is set to be­come the first In­done­sian start-up to list its shares be­fore the end of the year.

IDX man­agers ex­pect to see 1,500 start-ups or fin­tech com­pa­nies go pub­lic by 2022. The stock ex­change also tar­gets one mil­lion new in­di­vid­ual in­vestors a year.

“Ad­di­tion­ally, fin­tech com­pa­nies may help peo­ple who have no bank ac­count to in­vest in the stock mar­ket us­ing the fi­nan­cial ser­vices they of­fer,” said Ir­mawati. — JP

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